The UK's Office of Fair Trading (OFT) has approved a takeover of the Vion UK's poultry business by 2 Sisters Food, following an extensive review of the transaction.
The OFT fully reviewed the transaction, including the combination of the poultry businesses owned by both parties, and noted that the deal did not create competition concerns.
In April this year, Vion completed the sale of its red meat and poultry activities to the UK-based 2 Sisters Food. The sale included 11 processing facilities in Coupar Angus, Cambuslang and Portlethen in Scotland; Llangefni, Sandycroft,and Merthyr in Wales; Basildon, Witham, Eye, Victoria and Bodmin in England. The acquisition is expected to protect a key supply chain for British poultry and meat, providing support to farmers in England, Scotland and Wales.
Commenting on the development, 2 Sisters noted that with the OFT approval, the integration of both the red meat business and poultry business can now proceed.
2 Sisters said that the approval from OFT enables the company to move forward with plans to invest and improve the Vion business, which remains loss making, and further develop the Red Meat (beef and lamb) business, which offers growth potential.
The approval ends any uncertainty for the company's employees, customers and farmers and other suppliers who serve these facilities.
Vion UK's poultry business owns hatcheries, feed mills, and packing and processing facilities, and offers fresh chicken products. The company's red meat business operates from five facilities in the UK supplying beef and lamb to major retailers throughout the country, as well as to foodservice customers and export markets.
